Human Resources

People: Our Most Important Resource

The human resource strategy of Konecranes is designed to support the Group's business strategies, and to ensure that the Group has well-motivated and enthusiastic employees. Konecranes works hard to provide an attractive work-place for its employees. The number of employees rose during 2005, as a result of a growth in operations and acquisitions, in particular. As of the end of 2005, the Group's personnel stood at 5,923, an increase of 1,412 on the figure for 2004.

Peggy Hansson, Director, Competence Development

Comprehensive Training

Training has always been an integral part of the corporate philosophy of Konecranes. A fundamental objective of our extensive training program is to expose all personnel to operations and opportunities across the Group and to create a common sense of purpose to which people can commit. As a result of the success that this training has produced, Konecranes places a strong emphasis on continuous learning.

Konecranes Academy and Academy+

Over 200 employees have completed the Konecranes Academy program. The program was updated in the spring with the inclusion of a module on Supply Chain Management. The program's other modules focus on developing teamwork, financial management, customer relations management, business management, and leadership skills. Konecranes Academy graduates are offered the possibility of follow-up courses. A great number of graduates have taken advantage of this opportunity by participating in Academy+ training days that address subjects such as corporate strategies and strategic prioritization.

London Leadership Process

The senior management training initiative launched in 2000 continued under the umbrella of the London Leadership Process program. Six senior executives from Konecranes took part in the program, organized in conjunction with Dynea, Sanitec, and Wärtsilä. Eight senior executives took part in 2006. As our largest single group of employees, service technicians have been attending instruction programs at training centers worldwide since 2005. The benefits of such training programs are two-fold. Not only are we able to provide our service technicians with the best possible hands-on instruction and education, but the information derived from their performance is analyzed and used for recruitment and further training.

Internal chains of communication are also subject to special attention. The meetings held between local trainers around the world are an important forum for passing on information about new products and product development. Such communication is also necessary to ensure that people in the field have the latest information at their disposal. Local and business-specific training events covering areas such as IT, safety, and teamwork are held across the Group. These include the Konecranes Way event arranged by the Group's Nordic Organization, which focuses on developing customer service skills.

Incentive programs

Konecranes is a growing, global organization, committed to offering its employees a wide range of opportunities for shaping their careers and gaining international experience. A great number of employees have been with Konecranes for many years. This fact underlines the employee's commitment to Konecranes, but also the Group's commitment to promoting the well-being of its employees. Annual Trust, People, and Performance (TPP) discussions between managers and their subordinates help guarantee that everyone is familiar with the Group's goals and can commit to them. These discussions also provide an opportunity for agreeing personal goals and development needs.

A number of job satisfaction surveys were carried out across the Group in 2005, and the results from these have been used in further developing operations. Annual reviews of the local performance- related incentive and bonus systems were also carried out. Many employees also benefit from incentive programs driven by personal and team performance. In addition, the Group has four stock option programs (1997, 1999, 2001, and 2003) for senior managers and key personnel.

European Works Council

The Konecranes European Works Council (EWC), a joint body bringing together representatives from the Group's management and personnel, acts as a forum for exchanging views on topical issues and promoting cooperation throughout Europe. Personnel in the European Union countries appoint representatives for three-year terms of office. The 2005 EWC meeting was held in the Netherlands and discussed issues including the Group's financial performance, governance, and social responsibility. The three-year term of office ended in December 2005, and new members were elected at the beginning of 2006.

The annual Konecranes Conference was held in Savannah, Georgia in the US. A total of 147 senior managers attended the event, which focused on Group strategy and supply chain management.